Best Applicances Ltd. is a consumer electronic products manufacturer. The company

mainly produces kitchen appliances, such as fridges, stoves and ovens. The management

team of Best appliances had a strong focus on the company's profitability, and established

the following financial objectives.

1. Achieve 15% growth in sales revenue

2. Achieve a net profit margin of 10%

However, in the past a few years, the company struggled to achieve the sales revenue

growth due to fierce market competition. In addition, the company also faced difficulty to

attain the target for net profit margin. After some investigation, they find that the decline in

profitability is because there are substantial amount of products that need to be reworked

before sale.

The management heard about balanced scorecard and has asked you to design a better

performance measurement system based on the balanced scorecard framework.

Required:

Specify the one key objective for each of the four perspectives of the balanced scorecard

(i.e., financial, customer, internal process, and learning and growth perspectives), and for

each objective provide one lag and one lead indicator. In addition, explain the interrelation

between the four perspectives, specifically discuss how achieving other perspectives of the

balanced scorecard helps achieving the company's financial objective